The article is actually quite well thought out.
A2 will become a commodity - it is a matter of when not if.
It is the when that counts and we are not there yet.
So ride it now but keep an eye on the changing environment. Only a fool would think that the market won't change with time.
Wise words.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
"We are on the cusp of the biggest economic transformation of any kind for the last 200 years" This is an extremely interesting read, esp for anyone investing in food supply sector.
Dairy farming in the US it claims, will be all but bankrupt by 2030. Ten years goes by awfully quickly & big shifts are already happening which are only going to accelerate.
Am not remotely suggesting A2 is not still a good investment today, but good to be aware of whats just over the horizon, change is definitely coming whether we like it or not.
Chinese birth rate slows to the lowest in the history of the People's Republic of China
The country's birth rate in 2019 stood at 10.48 per thousand — the lowest since 1949 — data released by the National Bureau of Statistics of China showed on Friday.
"We are on the cusp of the biggest economic transformation of any kind for the last 200 years" This is an extremely interesting read, esp for anyone investing in food supply sector.
Dairy farming in the US it claims, will be all but bankrupt by 2030. Ten years goes by awfully quickly & big shifts are already happening which are only going to accelerate.
Am not remotely suggesting A2 is not still a good investment today, but good to be aware of whats just over the horizon, change is definitely coming whether we like it or not.
That reminds me back in the 70s when we had carless days because people were very very worried about oil running out. Nobody going to stop me eating bacon with my eggs. Or those nice juicy steaks on bbq and not to forget the bbq sausages wrapped in bread with bit of onion or cheese and tomato sauce. Deviled sausages are nice too. Followed by a nice glass of chocolate a2 milk.
The market may separate further into premium food versus cheaper convenience food. Succulent $100/kg steak versus 'up and go' (slurped in 60 seconds through a straw... not that far away from 'astronaut's goop). That view still accommodates 'premium' A2 milk and IF.
We should keep an eye out for startups developing these new foods.
That reminds me back in the 70s when we had carless days because people were very very worried about oil running out. Nobody going to stop me eating bacon with my eggs. Or those nice juicy steaks on bbq and not to forget the bbq sausages wrapped in bread with bit of onion or cheese and tomato sauce. Deviled sausages are nice too. Followed by a nice glass of chocolate a2 milk.
This is an area where NZ could make some good money.
There will always be a need for premium products.
Some people will happily pay more for their meat when the alternative is 'plant based meat'.
We may end up growing less meat and getting more for it.
As for a glass of A2 - a cheaper glass of A1 does me fine but I'm not their target market.
That reminds me back in the 70s when we had carless days because people were very very worried about oil running out. Nobody going to stop me eating bacon with my eggs. Or those nice juicy steaks on bbq and not to forget the bbq sausages wrapped in bread with bit of onion or cheese and tomato sauce. Deviled sausages are nice too. Followed by a nice glass of chocolate a2 milk.
No doubt - there always will be traditional food market niches for customers who are both Rich AND Conservative.
Question is - will this niche be big enough for a growth company like A2?
I don't know, but I think it is worthwhile to watch the market ... can't be that hard to produce A2 (or whatever) milk powder from bacteria ...). If these products are as good or better than the traditional product and at the same time much cheaper - what do you think will happen on the market? Just remember what happens with the impossible burger.
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"Prediction is very difficult, especially about the future" (Niels Bohr)
Originally Posted by dobby41
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